Mercenary   10 #1 Posted April 27, 2014 We are coming to the end of a 2 years fixed term mortgage deal but in those two years we've had a baby and my wife now works part time so we earn less than we did when we got the deal initially.  Is it general practice that if you stick with your bank or building society that gave you the initial deal / mortgage they sold be able to give you another fixed term deal despite your drop in wages? I'm terrified of having to go in a variable rate.  Also, the mortgage advisor we need to speak to at our building society has gone on holiday so we can't actually ask them directly which is why I thought I would post on here to see if anyone had an idea. Share this post Link to post Share on other sites Share this content via...
Hippogriff   10 #2 Posted April 27, 2014 Is it general practice that if you stick with your bank or building society that gave you the initial deal / mortgage they sold be able to give you another fixed term deal despite your drop in wages? I'm terrified of having to go in a variable rate.  This is my experience, yes. My lender of choice is YBS. About 90 days (or something like that) before my current product fixed rate term comes to an end, I find they write to me, telling me this. Usually they provide a booklet showing their current products. I've also decided to do this before they wrote to me as well, and just got on their site, looking at products. I then chose the one I wanted and made an appointment to see someone in Branch. The last time I did it all over the Internet via their messaging service. They still had to send me a letter out and something to sign.  They should definitely not need to go through affordability again to get you onto another good fixed term product... any fixed term would be better than their SVR anyway (which would be worse for you).  Maybe with the chance of interest rates rising, a longer fixed term (than 2 years) might be appropriate if you think your situation is going to be more long term... at least you can budget effectively, but you can - obviously - pay a little more. Share this post Link to post Share on other sites Share this content via...
Mercenary   10 #3 Posted April 27, 2014 Thanks for your reply!  That sound promising then, we're also with YBS so hopefully we'll get some sort of offers even though we earn about 25% less than we did when we got the original deal. Share this post Link to post Share on other sites Share this content via...
jplevene   10 #4 Posted April 28, 2014 Regulation has just changed this week which takes into account affordability and future earnings.  You will probably have to stick with your existing lender who will offer you a mortgage without affordability checks. Speak to them first without using a broker as the broker you will have to pay for. Share this post Link to post Share on other sites Share this content via...
Jeffrey Shaw   90 #5 Posted April 28, 2014 Regulation has just changed this week which takes into account affordability and future earnings.** You will probably have to stick with your existing lender who will offer you a mortgage without affordability checks. Speak to them first without using a broker as the broker you will have to pay for. ** A good point. It's called the Mortgage Market Review. See http://www.bbc.co.uk/news/business-27128734 Share this post Link to post Share on other sites Share this content via...